Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively.

Time	0	1	2	3
Project A Cash Flow	35,000	25,000	45,000	16,000
Project B Cash Flow	45,000	25,000	5,000	65,000

Use the payback decision rule to evaluate these projects; which one(s) should it be accepted or rejected?Multiple Choice

accept both A and B

accept neither A nor B

reject A, accept B

accept A, reject B